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Sunday, August 19, 2012

CAG report will have no impact on power generation: Umashankar, Union Power Secretary
Observing that the government was expecting generation in excess of 80,000 MW in the 12th Plan, the power secretary said, "I don't see any problem in that". Great....!!
MUMBAI: A day after the CAG's report estimating Rs 1.86 lakh crore gain to private firms in allocation of coal blocks was tabled in Parliament, Union Power Secretary P Umashankar said the finding will have no bearing on capacity addition.
"The CAG report will not have any impact on the capacity addition," Umashankar told reporters on the sidelines of an event here.
Observing that the government was expecting generation in excess of 80,000 MW in the 12th Plan, the power secretary said, "I don't see any problem in that".
The CAG has named 25 companies, including Essar Power, Hindalco, Tata Steel, Tata Power and Jindal Steel and Power, that secured the blocks sans competitive bidding in various states.
According to the report, Reliance Power had unduly gained over Rs 29,000 crore by diverting surplus coal from mines assigned to its Sasan power project in Madhya Pradesh.
"Delay in introduction of the process of competitive bidding has rendered the existing process beneficial to the private companies," the federal auditor said in its report on allocation of 57 coal blocks.

Courtesy Economic Times
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